Bank of England in new emergency move to calm markets

Bank of England warns of ‘material risk’ to financial stability after pension firms hit by sell-off

People stand outside of the Bank of England in London, Britain, October 10 2022. Picture: HANNAH MCKAY/ REUTERS

Inflation-linked gilts, typically held by pension funds and known in the market as linkers, suffered another big sell-off on Monday as the end to the BoE’s programme on Friday approached. The broader government bond market was more stable than on Monday, though 30-year bonds extended their price slide.

Pension funds have scrambled to raise cash since chancellor of the exchequer Kwasi Kwarteng sparked the bond rout on September 23 when he announced the government’s plans for unfunded tax cuts.

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